Business Standard

Explained: Do NBFCs have a better future than large, diversified players?

Non-banking financial companies may have entered a comfort zone years after having been put through the wringer

NBFCS
Premium

Reserve Bank of India (RBI) data show that NBFCs have emerged stronger.

Raghu Mohan
The impending merger of HDFC Ltd and HDFC Bank has reignited a hoary old debate — is the non-banking financial company (NBFC, or shadow bank) model past its sell-by date? After all, if market leader HDFC Ltd — albeit a mono-line business entity — thought it fit to vacate this space by merging into its offspring, 45 years into its existence, isn’t it possible that others may be unable to hold out much longer? But the reality on the ground points to a brighter dawn.

Reserve Bank of India (RBI) data show that NBFCs have emerged stronger, with reasonable balance-sheet

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 23 2022 | 6:03 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com